Hector N.

Miraflor
AREM 123

LEGAL REQUIREMENTS FOR REAL ESTATE

SERVICE

Real Estate Service Act (RESA) also known as Republic Act no. 9646 – AN ACT REGULATING THE
PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL
REGULATORY BOARD OF REAL ESTATE SERVICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

The State recognizes the vital role of real estate service practitioners in the social political, economic
development and progress of the country by promoting the real estate market, stimulating economic
activity and enhancing government income from real property-based transactions.

According to Section 3, Article 1 of RESA: Real estate service practitioners" shall refer to and consist of
the following:

(1) Real estate consultant - a duly registered and licensed -natural person who, for a
professional fee, compensation or other valuable consideration, offers or renders professional
advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or
disposition of lands or improvements thereon; and (ii) the conception, planning, management
and development of real estate projects.

(2) Real estate appraiser- a duly registered and licensed natural person who, for a professional
fee, compensation or other valuable consideration, performs or renders, or offers to perform
services in estimating and arriving at an opinion of or acts as an expert on real estate values,
such services of which shall be finally rendered by the preparation of the report in acceptable
written form.

(3) Real estate assessor - a duly registered and licensed natural person who works in a local
government unit and performs appraisal and assessment of real properties, including plants,
equipment, and machineries, essentially for taxation purposes.

(4) Real estate broker - a duly registered and licensed natural person who, for a professional fee,
commission or other valuable consideration, acts as an agent of a party in a real estate
transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of
the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar
transactions on real estate or any interest therein.

(5) Real estate salesperson - a duly accredited natural person who performs service for, and in
behalf of. a real estate broker who is registered and licensed by the Professional Regulatory
 Board of Real Estate Service for or in expectation of a share in the commission, professional fee,
compensation or other valuable consideration.

LICENSURE EXAMINATION AND REGISTRATION

Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real
estate salesperson, shall undergo an examination.

Requirements for Application for Examination:

1. Original & Photocopy of NSO / PSA Birth Certificate, or valid Passport, or any other proof of citizenship
2. Original & Photocopy of transcript of records and or
diploma with scanned picture
3. Original & Photocopy of notarized certification by
employer of his/her years of experience or pre- requisite Certificate of Registration (COR) and or
Professional Identification Card (PIC) or DTI License (for real estate consultants)
4. Original & Photocopy of NBI clearance
5. Original & Photocopy of duly notarized accredited
seminar and or training certificate
6. Community tax certificate
7. Four (40 colored passport size pictures with white
background and nametag and other documents in accordance with the requirements set by the
Commission.

Scope of Examination - An examination shall be given to the licensure applicants for real estate brokers,
real estate appraisers and real estate consultants which shall include, but not limited to, the following:

(a) For real estate consultants - fundamentals of real estate consulting; standards and ethics;
consulting tools and techniques, which include project feasibility study and investment
measurement tools; real estate finance and economics; real estate consulting and investment
analyses; consulting for specific engagement, which includes consulting for commercial,
industrial, recreation and resort and hotel properties, and consulting for government and
corporate and financial institutions; land management system and real property laws; and any
other related subjects as may be determined by the Board;

(b) For real estate appraisers - fundamentals of real estate principles and practices; standards
and ethics; theories and principles in appraisal; human and physical geography; methodology of
appraisal approaches; valuation procedures and research; appraisal of machinery and
equipment; practical appraisal mathematics; appraisal report writing; real estate finance and
economics; case studies; land management system and real property laws; and any other
related subjects as may be determined by the Board; and
 (c) For real estate brokers - fundamentals of property ownership; code of ethics and
responsibilities; legal requirements for real estate service practice; real estate brokerage
practice; subdivision development; condominium concept; real estate finance and economics;
basic principles of ecology; urban and rural land use; planning, development and zoning; legal
aspect of sale, mortgage and lease; documentation and registration; real property laws; and any
other related subjects as may be determined by the Board.

To conform with technological and modern developments, the Board may recluster, rearrange, modify,
add to, or exclude any of the foregoing subjects as may be necessary.

Qualification of Applicants for Examinations - In order to be admitted to the licensure examination for
real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction
of the Board that he/she possesses the following qualifications:

(a) A citizen of the Philippines;

(b) A holder of a relevant bachelor's degree from a state university or college, or other
educational institution duly recognized by the CHED: Provided, That as soon as a course leading
to a Bachelor's degree in Real Estate Service is implemented by the CHED, the Board shall make
this course a requirement for taking the "licensure examination; and

(c) Of good moral character, and must not have been convicted of any crime involving moral
turpitude: Provided, That an applicant for the licensure examination for real estate consultants
must show proof that he/she has at least ten (10) years experience as a licensed real estate
broker or an assessor, or as a bank or institutional appraiser or an employed person performing
real property valuation, or at least five (5) years experience as a licensed real estate appraiser.

All applications for examination shall be filed with the Board which shall assess and approve said
applications and issue to the qualified examinees the corresponding permits to take such examination.

*In order that a candidate may be deemed to have successfully passed the examination, he/she must
have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty
percent (50%) in any subject.

A certificate of registration (COR) shall be issued to examinees who pass the licensure examination for
real estate service subject to payment of fees prescribed by the Commission. A professional
identification card (PIC) bearing the registration number, date of issuance and expiry date, duly signed
by the chairperson of the Commission, shall likewise be issued to every registrant upon payment of the
required fees. The professional identification card shall be renewed every three (3) years.

The Board shall not issue a COR to a successful examinee who has been:

1. Convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude
2. Found guilty of immoral or dishonorable conduct after investigation by the Board
3. Found to be psychologically unfit
The Board may revoke the COR and PIC or cancel the permit of a practitioner or suspend the practitioner
from the practice of real estate service on any of the following instances:

1. Procurement of a COR and or PIC or Special/ Temporary Permit (STP) by fraud of deceit
2. Allowing an unqualified person to advertise or practice the profession by using the licensee’s PIC or
COR or STP
3. Unprofessional or unethical conduct
4. Malpractice or violation of RA No. 9646, the IRR, and
the Code of Ethics & Responsibilities
5. Engaging in the practice of the profession during the
period of one’s suspension

Registration Without Examination

Regardless of taking the exam and finishing the profession’s relevant Bachelor’s degree, the following
shall be issued a COR and PIC without taking the prescribed examination:
1. Those who are already licensed real estate brokers, appraisers, or consultants by the DTI by Ministry
Order No. 39, as amended on the date of RA No. 9646 effectivity July 30, 2009
2. Assessors and appraisers who hold permanent appointments and are performing the practice for the
last five (5) years and have passed the Real Property Assessing Officer examination, and have taking
Continuing Professional Education units on the date of RA No. 9646 July 30, 2009

Oath Taking of Real Estate Service Practitioners

All successful examinees, qualified applicants for registration, and accredited salespersons must take the
mass oathtaking before the Board or any officer of the Commission before entering into practice.

Real Estate Brokers’ Supervision of Salespersons

All applicants for the Real Estate Salesperson practice shall be accredited by the Board provided they
meet the requirements:
1. Completed at least two (2) years of college
2. Have undergone trainings and seminars of at least
twelve (12) credit units
3. Must submit other documentary requirements as
required by the Commission and Board

Penal Provisions
A violation of any of the provisions of RA No. 9646 shall be meted with the penalty of a fine of not less
than Php 100,000.00 or imprisonment of not less than two (2) years, or both such fine and
imprisonment upon the discretion of the court.
If committed by an unlicensed real estate practitioner, the penalty shall be doubled the fine and
imprisonment. Thus, Php 200,000.00 penalty or imprisonment of not less than four (4) years.